In the November newsletter, we raised the issue of Climate change and the compensation question.
Surprisingly an agreement WAS made about compensation at COP27, heralded as a landmark moment in global climate politics.
The agreement (adopted without a single objection) acknowledges that the emissions created by richer nations are responsible for the damage that results from the higher temperatures. As we outlined in November, New Zealand had already committed $20m and smaller pacific and island nations, as well as Pakistan, Bangladesh and many other countries are being impacted by the fury of the weather. It is three decades after Vanuatu raised the issue of help for these developing countries and it was agreed that this fund would be established before COP28 starts in 2023.
The agreement establishes funding arrangements for loss and damage. Countries agreed that the most vulnerable nations would be prioritised and high emitters like China and India may also be able to contribute to the fund. As Bloomberg outlined:
"Under the agreement, the nations decided “to establish new funding arrangements for assisting developing countries that are particularly vulnerable to the adverse effects of climate change, in responding to loss and damage.” That includes a focus on “providing and assisting in mobilizing new and additional resources,” which are meant to complement existing programs and funds."
Fortune magazine commented that "The “loss and damage” deal struck in Egypt was also vague on all of the important points: who will pay into the fund and how much, who will distribute that money and to whom. However, although the agreement is vague and toothless..... it represents a remarkable step forward."
How the fund will work (contributors and recipients) will be determined by a committee of countries.
A good step forward, but a lot more work to be done.